Caribbean Basin Initiative (CBI): A permanent program
designed to increase private investment, trade, and tourism in Caribbean
countries, initially created by the Caribbean Basin Economic Recovery
Act of 1983 and amended several times. It gives preferential
trade and tax benefits for eligible Caribbean countries, including duty-free
entry of eligible products. To be eligible, an article must be a "product" of
(as defined in the U.S. general rules of origin) a beneficiary country and
imported directly from it, and at least 35% of its import value must have
originated in one or more CBERA beneficiaries. Slightly different import value
rules apply to articles entering from Puerto Rico and the Virgin Islands. The
duty-free import of sugar and beef products is subject to a special eligibility
requirement that a beneficiary country submit and carry out a stable food
production plan ensuring that increased production of sugar and beef will not
adversely affect overall food production. Preferential tariff treatment, though,
does not extend to imports of: textiles and apparel subject to textile
agreements, specified footwear, canned tuna, petroleum and its products, and
watches and watch parts containing any material originating in countries denied
most-favored-nation trade status. Special criteria
apply to the duty-free import of ethanol through FY2000. Import-sensitive
products, not accorded duty-free tariff treatment, are eligible to enter at
lower than most-favored-nation tariff rates. These products include handbags,
luggage, flat goods (such as wallets, change purses, and key and eyeglass
cases), work gloves, and certain leather wearing apparel.